Fidelity: Bitcoin Could Be Part of New World Order

Jurrien Timmer, director of global macro at Fidelity, has opined that Bitcoin could "perhaps" become part of "a new world order," in which the U.S. dollar partially loses its supremacy

"If the dollar is in a sustained downtrend, it could provide a major tailwind for non-US equities and commodities," he said

Timmer pointed to the fact that the leading cryptocurrency had shown "palpable" weakness

The greenback suffered its first half-year performance since the early 1970s, dropping by 10% against a basket of other major fiat currencies. Such a severe plunge was last recorded back in 1973, which was the year President Richard Nixon ditched the gold standard

The euro has surged by 14%, routinely hitting multi-year peaks. The British pound also recently reached a three-year peak after recording a double-digit gain

The massive decline has been caused mainly by global trade tensions as well as concerns about the growing deficit. The U.S. Federal Reserve is also expected to cut interest rates this year, which will undercut the greenback's yield advantage

Gold prices tend to move inversely to real interest rates. However, as noted by Timmer, this correlation broke down about three years ago. "Maybe this regime change was signaled three years ago when gold stopped trading in lockstep with real rates," he said.

The yellow metal has so far outperformed Bitcoin in 2025. However, as reported by U.Today, Timmer predicted that gold could pass the baton to its digital competitor in 2025

Bitcoin reached an intraday high of $110,322 earlier this Thursday. The cryptocurrency is less than 2% away from reclaiming its previous all-time high of $112,000 that was reached on the Bistamp exchange on May 22.